Weekly Roundup

Exchange Collaboration: The NYSE and The Johannesburg Stock Exchange (JSE) have signed a memorandum of understanding to collaborate on the dual listing of companies on both exchanges. The exchanges have also agreed to jointly explore the development of new products and share knowledge around ESG, ETFs and, digital assets.

Extended Comment Periods: The SEC reopened the comment periods for 11 proposals and a request for comment because of a glitch on the commission’s website for comment form. There will be a 14-day re-opening that will start when the reopening release is published in the Federal Register, which could take a few days to several weeks.

Electronic Recordkeeping: The SEC voted to adopt amendments to modernize how broker-dealers preserve electronic records and enhance the electronic recordkeeping requirements for security-based swap entities. These amendments are in response to technological changes made in the past 20 years and make the rule adaptable to new technologies.

FSB Recommendations: The Financial Stability Board (FSB), which coordinates financial rulemaking among the Group of 20 Economies (G20), made nine recommendations for crypto companies. The FSB recommends having plans in place for shutting down firms in trouble and setting aside capital like banks when undertaking similar activities. The board plans to submit a framework for oversight “to promote the consistency and comprehensiveness of regulatory, supervisory and oversight approaches to crypto-asset activities and markets.”

Crypto Payments: Google has partnered with Coinbase and will start accepting crypto payments for cloud services starting next year. Crypto payments will initially be rolled out to a handful of customers involved in the Web3 industry. Google will also use Coinbase Prime.

BNY Mellon Crypto: Bank of New York Mellon Corp. will begin receiving clients’ cryptocurrencies this week, becoming the first large U.S. bank to safeguard digital assets alongside traditional investments on the same platform. The bank will store the keys required to access and transfer those assets and provide the same bookkeeping services for digital currencies that it offers to fund managers for stocks, bonds, commodities, and other assets.

In the Mix: This Week’s Top FinTech Thought Leader

  • Michael Safai, co-founder of trading firm Dexterity Capital, joined Bloomberg’s “What Goes Up” podcast to discuss the digital-assets market and how current high-frequency crypto trading strategies differ from the famous “Flash Boys” of the stock market. He believes institutional investors are playing a much more influential role in crypto markets as retail traders retreat, explaining much of the recent rangebound price action.

  • Michael Barr, vice chair of supervision at the Federal Reserve, warned banks about involvement in crypto, stating that crypto tokens are unlikely to replace traditional currency. He commented that banks that accept deposits from crypto companies should be aware of increased liquidity risks, particularly with firms highly interconnected with other digital asset businesses.

  • Kirsten Wegner, CEO of Modern Markets Initiative, wrote an op-ed for Traders Magazine on the importance of transparency in the costs of trading. She offers a four-step plan for investors and policymakers to look under the hood at the costs and cost-savings that go into providing liquidity and making a trade.

  • Study Hall is back with a second season! In season two we’ll explore the ins and outs of financial technology together. We’re kicking off the season with a conversation on fintech and the elections with Tarek Mansour, the Founder of Kalshi. Head on over to buzzsprout.com/1893041/11369459 for a sneak peak!